The Monetary Authority of Singapore (MAS) said it intends to improve standards for enterprise risk management (ERM) practices of all financial institutions (FIs) in addition to its review of the current risk-based capital regime, by issuing a notice of new guidelines, now under public consultation and expected to be implemented by 1 January 2014.
The new guidelines cover credit risk, market risk, internal controls, operational risks, liquidity and other risks arising from a company’s membership in a group, and insurance core activities such as product development, pricing and underwriting. The MAS said the rules are expected to apply to all registered insurers except captive insurers and marine mutuals.
“Traditional risk management considers each risk on its own without taking into account the interdependencies of the various relevant and material risks. It also places little or no emphasis on risks arising from an insurer’s association with other entities within the same group, which can be insurance or non-insurance, as well as regulated or non-regulated entities,” the MAS commented.
Forecasts for 2016-2020 place Africa as the second fastest growing region in the world (at a compound annual growth rate (CAGR) of 4.3%), just below Emerging Asia.
Sentiment in the financial services sector deteriorated in the three months to September, as firms digested the challenges of lower interest rates and the uncertainty caused by the vote to leave the European Union (EU), according to the latest CBI/PwC Financial Services Survey.
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.
The proposals of both US presidential candidates could shake up operating conditions in several sectors, reports the credit ratings agency.